Table of Contents
- Legal rent increase limit for 2026
- How to properly use the N1 form
- Common mistakes landlords must avoid
- Exceptions and special situations
- Final thoughts and next steps
Legal rent increase limit for 2026
The Government of Ontario has set the maximum allowable rent increase for 2026 at 2.1% for units subject to rent control. This guideline applies to most residential rental units and is regulated under the
Residential Tenancies Act (RTA).
However, not all properties fall under rent control. There are exceptions for certain newer buildings or units that meet specific criteria. If you’re unsure whether your property qualifies, review our
Ontario property management services.
How to properly use the N1 form
To legally increase rent in Ontario, landlords must serve tenants with an
N1 – Notice of Rent Increase form
at least 90 days before the increase takes effect. The notice must be delivered in person, by regular mail, or using another method approved by the Landlord and Tenant Board (LTB).
Additionally, there must be a minimum of 12 months between rent increases or since the start of the tenancy.
Mistakes in this process can invalidate the rent increase. For a complete guide, read:
Increasing Rent Using the N1 Form: A Guide for Landlords in Ontario
Common mistakes landlords must avoid
Many Ontario landlords unintentionally violate the RTA due to outdated information or incorrect assumptions. Common mistakes include:
- Increasing rent before 12 months have passed
- Serving the N1 form too late
- Applying rent increases above the legal limit without LTB approval
- Assuming all new buildings are automatically exempt
These errors can lead to rent disputes, unpaid rent, or even penalties. To avoid issues, read:
How to Handle Unpaid Rent: A Landlord’s Perspective According to the RTA
Exceptions and special situations
Some rental properties are exempt from rent control under Ontario regulations. Common examples include:
- Units first occupied after November 15, 2018
- Single-family homes rented out after being owner-occupied
- Short-term leases or partial commercial-use rentals
However, these exemptions do not exempt you from the RTA. You are still required to give proper notice and respect tenant rights.
We recommend reviewing this detailed comparison:
Ontario Standard Lease vs. OREA Forms: What Ontario Landlords Must Know
Final thoughts and next steps
The 2026 rent guideline of 2.1% may not seem like much, but failing to comply with legal requirements can cost you far more in the long run.
- Verify if your unit is subject to rent control
- Accurately calculate the allowed increase
- Serve the N1 form on time
- Keep all communications and notices properly documented
If you need help navigating the legal process, explore our full range of landlord services:
Landlord Pricing & Services – Blue Anchor PM
And discover how a property manager can help you protect your investment and avoid legal pitfalls:
How Can a Property Manager Save You Money?
Still have questions about the 2026 rent increase rules?
Contact the team at Blue Anchor Property Management for expert, local support:
Contact Blue Anchor PM
